2020 has begun! Many businesses take the start of the New Year as an opportunity to review their business plan. Whether they are considering expansion or looking at minimizing, every company could use a little savings.

Here are 4 places to cut costs that help save you money and make your business more sustainable in the long run.

As we discussed in one of our previous articles (Cost Cuts That Hurt vs Help) you need to be very strategic about where you cut costs so you don’t end up cutting something that will hurt you in the long run. Here are some places you can look to cut costs that will save you money over the long term.

  1. Negotiate your Telecommunication Services
    1. Plans and offers change just about every 6 months and if you take the time to call and ask what deals are out there, chances are the call will save you money.
    2. Take some time researching competitor deals and let your service provider know you’re considering switching plans.
    3. Cutting your costs by even just a small amount – you save a little each month, but ultimately it can add up and have a significant impact on your bottom line.
  2. High Cost for Hot Gadgets
    1. Does every one of your employees have an expensive phone or tablet with a lot of data?
    2. Do they actually need all of that added cost?
    3. Consider getting them a nice substitute that costs less and doesn’t limit their performance.
  3. Get your team on board with Performance-based Partnerships and Incentives
    1. When hiring someone consider offering commission only or primarily commission based pay. This forces your new employees to be vested in the success of your business.
    2. Instead of cutting salaries and benefits of current employees, offer incentive-based bonuses and raises. That way you can still reward your team and get them invested in your profitable returns.
  4. TRACK, TRACK, TRACK expenses
    1. Write out all of your expenses for at least the last three months.
    2. All you need to do, to start, is to find the professional equivalent of your daily cost of a $4 cup of Starbucks Coffee. That daily cost that could save you significant money in the long run.

I hope this information is helpful and that you have a very prosperous new year!

– Diane Economaki